Life Expectancy - Saving and Planning
- Thread starter alarmguy
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It's almost like when you remove the small numbers the average of the remaining numbers goes up.
Law of averages? Survivor bias?
Law of averages? Survivor bias?
I've already purchased my gravestone. It says, "He's not here yet."
That's why most financial planners assume you will live to 95. Even then you might have to make adjustments as you get closer to that age.
Running out of money is not funny. I had that happen to patients. Husband (a professional who had a good career) and wife were in their late 80s. I had to talk them into accepting social benefits. There was no other option.
I had a physician working for me who, in his 80s, was broke. He had a long career, was at the very top of his specialty, had been a top earner and just spent it all. The only consolation was that his wife owned a cottage and had a little money which she wasn't giving him access to.
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$50 site donor 2026
That's correct and it's purely because of the math. The potential causes of an early death (congenital defects, infections, the accidents of youth, workplace accidents) are all or mostly behind people at any age. The small numbers are gone, so the average just keeps rising.
The life expectancy of a 100 year old Canadian is still 1 1/2 to 2 1/2 years, meaning there is an average life span of 101.5 to 102.5 (for those few who make it to 100).
If not managed, Social Security will most certainly run out of money. In actuality, it has already spent most of the money it has ever collected and relies on cash flows from those in the workforce, while the number of retirees and life expectancy increases. It is a political issue, and your elected representatives will go through gyrations, I believe, to protect the system. But there is nothing magical about the system guaranteeing its survival. Mass media scare tactics are not what is behind the system running out of cash. Not really sure where "big banks, big corporations, big retail stores, huge lobbying groups" fit in. Your note seems to conflate social security woes with excessive consumer debt.
Dave Ramsey gives people the wise advice to stay out of debt, keep spending within income and to save. Beyond that, he is a financial illiterate and has a long record of giving stupid, incorrect advice. Two areas where he is completely unschooled are the place of mortgages in primary home ownership, and his complete lack of discernment in differentiating bottom feeder colleges from elite schools. So Dave Ramsey should not be taught in high school. Perhaps a class in financial literacy taught by someone schooled in the subject.
IMO, Dave Ramsey's advice may be good for certain people, such as those in financial debt. But I disagree with his methodology; there are better ways. And some just makes no sense, such as pay off small debts first. Pay off high interest first.
it is definitely eye opening, theirs a few calculators out there for stuff like that. I made one for myself some months back for retirement and included the SSA tables , since I've been out of work, entirely a hobby project to be honest. https://rosesolutions.work/webswr/ if you want to try it out or just kick the tires...go nuts.
You're spot on ! I've got quite a few fillings in my teeth mostly between them I'd floss like made and it would still happen, then they put fillings in and it was almost impossible to actually get the floss between the teeth. Got a waterpic and its took me down to zero cavities in years...now I've had other teeth issues (cracking / broke) but it can't fix past damage.
That’s my point it is managed and it always will be.
Social media in this country is killing us. Every day is a catastrophe on every subject, including the weather, including housing, including healthcare. Every day is just horrible living life. Everything is a catastrophe, including the climate of the Earth good Lord people have to turn off the media is my feeling. They are addicted to miserable thinking. Not directed at you in anyway.
People buying into this corporation mass media social phenomenon and they’re all making money off of non-critical thinking people.
Social Security can and will be fixed because it’s not broken and it will be adjusted and fixed when the time is near.
Just my opinion and I’ll tell everybody who doesn’t believe it just wait and see
This thread is about people who are planning for retirement, the first post shows they will probably live longer than they expect.
I wish I had your optimism. I feel that most politicians/employers wait until it's crisis time and then will still argue for more time because "they didn't see that coming". Probably comes from human nature and the desire to procrastinate. Or to let an unpopular decision be someone else's problem.
For me I am rounding up my savings plan. Instead of the typical 10x saved for retirement I'm aiming for 15x. I suspect I'll have to work until 67 to pull that off so I hope that I'm being pessimistic and can bow out before then. But 10x is not enough I think, not if benefits get cut.
I guess I won't be so concerned about buying green bananas for a while...
The fact is, there is no Social Security Trust Fund and there never was one. My social security, and everyone else's, is paid out of current federal government income and borrowing. The trust fund lie is the same as if I say I owe myself $1 million. In fact, I have signed a promissory note to myself for $1 million. How much is that note actually worth? When I take it to the bank to borrow money using it as collateral, how much will the bank loan me?
We have Waterpic's but that's one device I despise.. despise with a passion! Just can't handle water in the face.
Social security is funded directly from payroll taxes, so current workers pay SS recipients just like those recipients paid for previous recipients. The first recipients withdrew without paying much in. So as long as there are people paying in it cannot go 100% bust.
When there is excess payments they go into the trust fund, and when there is a shortfall of payments they come out of the trust fund. The trust fund has been taking money out since 2021 and the current estimate is it will be depleted in 2032, however that number gets revised yearly. When it runs out current estimates indicate there will be enough payroll taxes to pay about 80% of the promised benefit, using current deduction rates.
I am unsure I would make this assumption. Since the younger generation was already completely screwed by the social security reforms made in 1979. If they actually know what there voting for I cannot imagine them voting to pay more taxes so retirees will get benefits there not entitled to themselves. However people do dumb things so who knows?
The board of trustees administers the programs per the laws on the books. Payroll taxes are fixed and congress has never changed them except for payroll tax holidays which basically depletes the funds faster. The last time the program was changed by congress was 1983 I believe, and the board of trustees cannot make any changes on there own. I wouldn't call that managed?
I think the wand goes in your mouth before you turn it on…
My DIL is a CFP (MBA in finance as well) and financial advisor at one of the larger investment companies. She was successful enough that she now advises advisors for the company by going into underperforming (in their opinion) branches. Her number one pet peeve is investors (usually new ones) who do not take FULL advantage of an employers provided 401k "match" when one is offered. She considers not taking "free" money almost as bad as not having an individual retirement account at all. It's the very first thing she requires her clients to do...meet the max match. If they cannot tolerate that initial form of investing there's probably little else she will be able to help them with. She'll research the investment options the employer's fund manager offers and make recommendations on how to distribute or redistribute contributions if necessary.
I have a simple investment strategy. Pay yourself first. Payroll deduction, especially for corp match as @GaryMX5 points out.
And put something into a nice index fund, as well as a little more risky stuff, like high tech.
Critical to me was having a place to live, above all else. I can tell you, having a home, or several, free and clear in an appreciating location is a great feeling. You will sleep better! Ya gotta have a place to hang your hat! And service your ride...
Good luck and keep at it. Play the long game. And don't buy that fancy pants car until the important stuff is complete. You can thank me later.
And put something into a nice index fund, as well as a little more risky stuff, like high tech.
Critical to me was having a place to live, above all else. I can tell you, having a home, or several, free and clear in an appreciating location is a great feeling. You will sleep better! Ya gotta have a place to hang your hat! And service your ride...
Good luck and keep at it. Play the long game. And don't buy that fancy pants car until the important stuff is complete. You can thank me later.
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